maritza east 1, bulgaria

8/7/2019 Maritza East 1, Bulgaria

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Presentation By-

Satinder Sandhu


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` Bulgaria is a country with limited energy resourcesand its power sector is reliant on aging thermal andnuclear capacity for its base-load and shoulder-loadrequirements.

` As part of its steady progress toward EU accession,Bulgaria has been reforming its power sector and isworking to urgently replace capacity that is inefficient,highly polluting, and often in violation of EUenvironmental requirements.

` This private sector-led generation project forms anintegral part of the countrys energy sector reform.


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` The new plant will provide state-of-art, reliable and environmentally soundgeneration capacity to help satisfy future demand for electricity in Bulgaria.

` Generation of $60 million in taxes over the 15-year PPA, in addition to localtaxes.

` Employment- 2,000 Bulgarian workers during the construction 250 workers during operation Continued employment at the local Maritza East mines, which provides direct and

indirect employment for roughly 8,000 workers Job opportunities through the purchase of more than $150 million in locally

sourced goods.

` Compliance with EU environmental standards

` Reduce existing dust emissions-positive impact on local and regional airquality.


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` The power sector is still undergoing transformation.

` The legal and regulatory framework has been improved through theenactment of the Energy Law in 2003, consistent with EU energydirectives. Electricity distribution and generation companies were spunoff from the former monopoly electricity company, NEK, and thedistribution sector has been completely privatized.

` These reforms are expected to continue.

` NEK was expected to be restructured by unbundling it into a wholesalepower supplier, a hydro generator company, and a transmissioncompany, and the market was expected to be fully liberalized.

Uncertainties associated with the proposed restructuring are themain hurdle in raising long-term financing for the project.


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MIGA will pay compensation to lenders in case-

` Civil disturbance or war causes physical damage to thecompanys assets or leads to business interruption thatimpacts the projects financial viability.

` Measures taken or approved by the host government thatwould affect the terms and conditions of the projectsagreements.

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Failure of the host government to ensure that its state-owned companies to perform their obligations under theproject agreements.


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` The guarantees cover e89 million in loans and

interest on loans syndicated by Calyon ofFrance, and an e10 million equity investment byAES Bulgaria Holdings BV, a wholly ownedsubsidiary of the US based AES Corporation.

` The guarantees are for 16 years and cover therisks of expropriation and war and civildisturbance.

maritza east 1, bulgaria

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